The Government Has Destroyed Our Money

The debate on whether to raise the debt ceiling serves as reminder of what happens when you let the government own something. If you want to maximize the value and productivity of something, watch a capitalist put it to work. If you want to see something wasted and even destroyed, let the government have it. This is true of natural resources, security, and yes, even money.

Nikolai Lenin said “the best way to destroy the capitalist system is to debase the currency.” That has been fully accomplished in the United States, where the currency is 100% debased, by definition. The paper bills and nickel/copper tokens we use in our transactions are worthless. The only reason we use them is because the government forces us to by way of the legal tender laws; if someone offers to pay his debt with legal tender and you refuse it, the debt is cancelled.

So as you hold those dollar bills in your hand, all you have is worthless paper — the “money” value of it is owned entirely by the government, and its value is totally at the whim of corrupt, or at best incompetent, politicians. No matter what is done with the debt ceiling, this fundamental problem will remain.

What we need is a monetary system that has three characteristics. First, it must be based on a valuable commodity like gold or silver. That way, if you own the gold, you own the money. Second, our new system must ban fractional reserve banking, which is just a euphemism for “counterfeiting.” Finally, no one, especially not the government, must have a monopoly on money production. We must have a completely free, competitive market on the coining of money.

Until this happens, your money will never be safe from the government.

For Liberty,

Manny Edwards